What is a PEO Or EOR Service? Why Your Business Should Consider Using this Service?
PEO (Professional Employer Organization) or EOR (Employer of Records) is a term that gained popularity in recent years as companies began to expand globally to broaden the talent pool across borders. PEO and EOR services help businesses hire employees without the need for their business entity and outsource administrative and human resource tasks. PEO/EOR firms will assist companies to manage their payrolling, tax filing, compliance, benefits, and all other HR solutions adhering to the local, state, and central laws of the country where the employee is working from. By partnering with a PEO/EOR firm for international recruiting, businesses can save time and money by outsourcing their payrolling processes. This will help businesses concentrate on their core operations and sales rather than mundane tasks of HR, Payroll, and benefits management. This informative article will take you through PEO/EOR services and the benefits of using these services.
Advantages of PEO or EOR services for business success
Saving HR costs
Employment risk mitigation
No need to set up a local entity
Easy to expand globally and scalable
Manage benefits and compliance internationally
Through each of the aforementioned points, let’s discuss the key advantages of PEO and EOR. It will assist you in better understanding the reality of using a PEO service in your company.
1. Saving HR costs
Business owners are concerned that working with PEO/EOR can be a costly deal and is not affordable for small businesses and start-ups. But in reality, partnering with a good PEO can reduce hiring costs and HR costs more than you forecasted. All complex payrolling management activities will be taken care of by PEO and hence you don’t need to hire any particular team of experts for doing it. All the HR costs will be specified in the agreement you are signing with your PEO and you can control your budget without any surprises.
2. Employment risk mitigation
PEOs are aligned with teams that are adept in managing any complex payrolling, compliance, benefits, and taxes according to federal and state laws. A professional employer organization will deal with employee relations, onboarding, terminations, monthly timesheets, and other employee-related concerns in accordance with all pertaining employment laws. It will lead to addressing all key areas of employment risks and rectifying them timely, hence no headaches to the organizations!
3. Save time
Managing employee payrolling, legal compliance, employee benefits, tax filing, and all other human resource administrative functions are time-consuming tasks in a business. It requires a considerable amount of labor force which can be used in other business functions without any doubt. Needless to say, utilizing PEO or EOR will be the best solution for saving a substantial amount of time.
4. No need to set up a local entity
Companies hesitate to hire talents internationally mainly because of the cost of setting up an entity and the expenses of providing proper infrastructure for remote resources. PEOs can work as legal employers for your employees in their residing country by managing all the administrative functions. Hence your global talent expansion will be easier without having any entity in any country. You can leverage a broad pool of talent for your open positions from cost-effective countries like India, Mexico, etc.
5. Easy to expand globally and scalable
Considering the cost, time, resources, and complications in managing international payments of remote teams, companies may experience global expansion as a bewildered function. That’s why professional employer organizations or employers of record are significant for companies who aim for hiring international resources. It will simplify all intricacies that you are concerned about in your journey to business growth overseas through global talent. Do not limit your business just because of lacking local talent when you can access great talent across the globe without any hurdles.
6. Manage benefits and compliance internationally
It needs an adept team for untangling the employee benefits, compensations, allowances, bonuses, insurance benefits, withholdings, and all other mandatory employee payment specifications sticking to the clear track of legal guidelines in each country. Companies do not need to concentrate on this multifaceted function if they have partnered with a PEO. Companies can submit requests for managing payrolling for any number of resources in any country and hence it is good for scaling your talent with fewer efforts. PEO companies will be always updated with any changes in local, international, federal, and state rules and regulations; therefore, you can avoid the risks of any law violations.
How PEO or EOR benefits a company?
A professional employer organization will help you tap into global talent without dealing with the annoyances of federal and state employment guidelines in the location of your employee. You can build your virtual offshore teams in countries like India, Mexico, etc. compliantly with any amendment. You don’t need to deal with employment management risks if you work with the best PEO service providers. The primary goal for any PEO will be saving the cost of the company and simplifying the HR outsourcing functions globally. Payrolling, compliance, benefits, etc are consistent business functions that need constant attention. And how great it is to be handled by a co-employer in the most affordable and time-saving way? That’s how a PEO/EOR will benefit the company in workforce globalization.
Why Global Squirrels is the best PEO Partner for your business?
Global Squirrels is an innovative PEO platform with easy to navigate dashboard and advanced features to empower businesses with global talent. You can register with us and submit your requests for talents or payrolling services through our different plans such as Purple Squirrel plan, Orange Squirrel plan, and Blue Squirrel plan. This platform is a self-subscription platform with an expert panel of payrolling professionals who are proficient at tackling payrolling duties and have a solid understanding of various governments’ laws and regulations. We go above and beyond the conventional PEO or EOR services by offering co-working spaces and other infrastructure facilities for your remote workforce.
Global Squirrels is the only platform that allows you to recruit remote talent in the most cost-effective approach in just a few clicks rather than using contract workers through outsourcing agencies. Why Global Squirrels stands out from our international PEO firms is that it is more than just a PEO firm, it helps you find the talent, provides PEO service and even offers a co-working space for your employees based on the plans you sign up with!